Axis Bank likely to form 50:50 JV with Banque Privee

Mumbai, Oct 13 | Updated: Oct 14 2008, 06:26am hrs
Private lender, Axis Bank plans to form an asset management company with Geneva-based LCF Rothschild Group company, Banque Privee Edmond de Rothschild Europe (BPERE) to offer private banking and wealth management services to its clients.

Axis Bank and the foreign partner will have equal shareholding in the new entity, a top Axis Bank official said. As per the initial understandings, the bank and the foreign partner will have equal shareholding in the new company, the official told PTI here.

The bank would mainly act as a distribution partner in the new venture and will have trained professionals to serve its wealth management and private banking clientele, the official said.

Clients, who have investable assets of above Rs 50 lakh can avail the wealth management services while private banking clients need to have investable assets of a minimum Rs 5 crore, the official said. LCF Rothschild Group has strong presence in asset management and advisory services business across various geographies and has above 100 billion euro assets under management, according to the groups web site.

Following the board approval, Axis Bank now will have to seek the Reserve Bank permission to set up the new company, the official said.

Axis Bank clocked a 76.8% growth in its net profits for the quarter ended September 30 drawing strength from a robust growth in its CASA and fee-based income.

PTI